President Cyril Ramaphosa says South Africa and Nigeria enjoy strong diplomatic ties and expanding trade and investment flows.
“The strategic positioning of both countries in their respective regions presents enormous opportunities for collaboration,” President Ramaphosa said.
South Africa and Nigeria are this year marking 30 years of diplomatic relations, established in February 1994.
Speaking during a roundtable discussion between South Africa and Nigeria held in Cape Town on Tuesday, President Ramaphosa said in West Africa, Nigeria is the main destination for South African exports and investments.
“But more needs to be done to improve trade and commercial relations between the two countries,” he said.
President Ramaphosa said South Africa runs a large trade deficit with Nigeria, mainly due to its import of Nigerian oil and gas.
“There is a need to diversify our trade to ensure a mutually-beneficial partnership. We are greatly encouraged by the presence of South African companies in Nigeria, just as we welcome Nigerian companies in South Africa.
“We do recognise that challenges still exist within our respective operating environments that limit the expansion of investment and sometimes impact on the operations of companies,” he said.
The President visited Nigeria during a State Visit in 2021 and the Ministers of Trade launched the Joint Ministerial Advisory Council on Industry, Trade and Investment.
He added that South Africa and Nigeria have agreed on the full operationalisation of the Council.
“This will support a conducive environment for improved trade and investment. Through the Council, we hope to ensure the efficient resolution of trade- and investment-related challenges.
“As governments, we have committed in our Bi-National Commission to create an enabling environment for doing business in our respective countries. We have an opportunity to drive industrialization.”
The first citizen said in the automotive sector for example, the two countries can create value chains in the manufacture of components and electric motorcycles.
“In critical minerals, we can use lithium to manufacture electric batteries. There is also much opportunity for cooperation on pharmaceuticals. Our two countries are in a strategic position to benefit from the rapid growth of clean energy manufacturing industries.
“South Africa has developed a Just Transition Framework and an Investment Plan that anticipates massive investments in renewable energy and the green economy over the next few years,” he said.
In addition, as part of the broader global transition to a low-carbon economy, the two countries must leverage the abundant natural resources that exist to promote green industrialisation.
“We should leverage each other’s capabilities in minerals processing. We must work together to ensure critical minerals are beneficiated at source. We call on business to support and involve themselves in these initiatives.
“Our development finance institutions can work together to support infrastructure development.”
The President said South Africa has embarked on a massive infrastructure investment drive that encompasses projects in electricity generation and transmission, bulk water supply, roads, railways, bridges and ports.
“We need to explore how we can mobilise our respective capabilities and resources to develop social and economic infrastructure in our countries.
“The African Continental Free Trade Area, once fully implemented, will enable a massive growth in intra-African trade and investment. We must identify what products can be traded among ourselves that we are now importing from elsewhere,” he said.